North Carolina Down Payment Support Systems

Online Merchant account - These programs would be the deposit Assistance System along with the Mortgage Credit Certificate.

If you qualify for one of those programs and you also buy a property and December 1, 2009, you can even qualify for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who's a First Time Home Buyer? There is a First Time Home Buyer someone who hasn't owned a house in the previous three years. This is exactly the same qualifying definition.

What's a Mortgage Credit Certificate and Who Qualifies?

The MCC takes this a step further. An MCC “reduces your tax liability depending on a percentage of the mortgage interest that you pay.

If you qualify for the MCC, you are able to claim 20% of the interest you pay as a credit on your federal income taxes on your mortgage. It's possible for you to save up to .

You may manage to join this if you do qualify for 2009, for the MCC. This might reduce the tax liability of a buyer's by $10,000.

Who qualifies for an MCC is based in your income as well as the cost of the home you are buying. Household income is defined as the “gross income of the mortgagor and any other person expected to reside in the dwelling who's 18 years old or older.”

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limits 1 Individual $61,500 2 Men $61,500 3 Men $70,500 4 Individuals $70,500

MCC Sales Price Limitations New House $220,000 Existing Dwelling $210,000

Home buyers that want help with their down payment and closing prices might be able to get down payment assistance - or, in other words, interest-free, deferred second mortgages up to $8,000. The customer only has to pay and the load would pay around $8,000 of the remaining balance.

This program has more rigorous income limits than the MCC program outlined above. Like the MCC program, it might be used together with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The down payment assistance, nonetheless, can't be applied together with the MCC. That is an either or situation.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Persons $45,650 3 Individuals $51,350 4 Men $57,050

Down Payment Support Sales Price Limits New Home $210,000 Existing House $210,000